Last week we looked at the Cardinal Sin of market sharing. This week we discuss Cardinal Sin No. 4 – bid rigging.
Bid rigging refers to agreements between competitors not to compete for a tender, and instead allowing a designated winner to be awarded the project or contract.
Why Rig Bids?
To prevent competitors from undercutting each other, and enable each competitor to charge a higher price or lower the quality of goods or services offered.